Prices in the city have climbed almost as sharply as capital values this year, say consultants
International City, Deira and Discovery Gardens are the most affordable areas for rent, while Palm Jumeirah and Downtown command the highest rentals in the emirate.
According to Asteco’s second-quarter report, rents for a studio in International City start from Dh17,500 per annum and go up to Dh65,000 for a three-bedroom unit. Rents in Deira for a studio, on the other hand, start from Dh18,000, while it costs Dh95,000 to rent a three-bedroom apartment.
Rents in Discovery Gardens range between Dh24,000 for a studio to Dh65,000 for a bedroom flat.
Rents in another two affordable areas, Dubai Sports City and Jumeirah Village, start from Dh25,000 for a studio.
5 most affordable areas (AED):
|Dubai Sports City||25-32.5k||32.5-45k||45-67.5k|
5 most luxurious/expensive areas (AED):
(Source: Asteco, KT Research)
Rents in the affordable segment witnessed a slower increase as compared to mid and high-end areas of Dubai, as the latter witnessed stronger demand.
Rents in the second quarter rose between four per cent to 19 per cent in the second quarter in the affordable category as compared to the same period last year, while tenants paid between 16 per cent to 24 per cent more for the mid to high-end areas.
In the high-end category, Palm Jumeirah commanded the highest apartment rental rate starting from Dh65,000 for a studio and Dh300,000 for a three-bedroom unit.
It is expected that around 22,000 apartments will come online in Dubai this year, including 6,000 delivered in the first quarter and 7,000 in the second quarter of this year.
The real estate consultancy said rental rate growth continued with the same momentum recorded over the last year, with the average quarterly increases realised at four per cent for apartments and six per cent for villas.
Global real estate consultancy Knight Frank said that rents in Dubai have climbed almost as sharply as capital values this year.
News Source: Khaleej Times